Site visit – Bingo Industries

On June 26 we spent the day with Bingo Industries (ASX: BIN), one of our biggest holdings.

Why do we like Bingo?

It began life as a listed company with two (collections and post collection sorting) of the three key components of the waste logistics chain.

The acquisition of Dial-a-dump (DADI) in early 2019 added Australia’s leading recycling and landfill capability and completed the vertical integration of the business.

This acquisition, combined with the lower share price driven by the markets concerns about the impact of lower housing development waste, has provided an ideal buying opportunity, in our opinion.

What did we learn on June 26?

  • That DADI have not only added significant assets to Bingo but also very complementary management skills.
  • The new Bingo is achieving class leading levels of recycling which in some cases is over 75%.
  • The company has by far the largest amount of landfill capacity in Sydney.
  • The company has put considerable effort onto supporting the Indigenous, Minority and semi-skilled members of its workforce.
  • The company has a sound strategic plan to achieve success in the eastern Seaboard of Australia.

Author: Stephen Wood, Principal and Portfolio Manager

The information in this article has been prepared on the basis that the Client is a wholesale client within the meaning of the Corporations Act 2001 (Cth), is general in nature and is not intended to constitute advice or a securities recommendation. It should be regarded as general information only rather than advice. Because of that, the Client should, before acting on any such information, consider its appropriateness, having regard to the Client’s objectives, financial situation and needs. Any information provided or conclusions made in this article, whether express or implied, including the case studies, do not take into account the investment objectives, financial situation and particular needs of the Client. Past performance is not a guide to future performance. Neither Eiger Capital Pty Limited (Eiger) (ABN 72 631 838 607), Fidante Partners Limited (FPL)(ABN 94 002 835 592, AFSL 234668) nor any other person guarantees the repayment of capital or any particular rate of return of the Client portfolio. Eiger is an Authorised Representative of Fidante Partners (Authorised Representative Number 1274599). Except to the extent prohibited by statute, neither Eiger nor FPL nor any of their directors, officers, employees or agents accepts any liability (whether in negligence or otherwise) for any errors or omissions contained in this article.